Terreno Buys CA Industrial Property - Analyst Blog
06 Giugno 2012 - 10:00AM
Zacks
Terreno Realty
Corporation (TRNO), a real estate investment trust (REIT),
has recently acquired an industrial property in Commerce,
California, for approximately $52.4 million. The acquisition is
part of the long-term strategy of the company to abstain from
pursuing ground-up development or land investments, and instead own
functional and flexible buildings in infill locations that can be
modified to accommodate single and multiple tenants at discounts to
replacement cost.
The 5-building acquired property
spanning 545,000 square feet of space is presently 79% leased to 14
tenants. The property is strategically located in close proximity
to the interstate highways, and consequently offers unmatched
distribution space to the lessee with easy access to transportation
facilities.
The estimated stabilized cap rate
of the asset is 6.0%. Total acquisition cost of the property
included the initial purchase price, the effects of marking assumed
debt to market, due diligence and closing costs, estimated
near-term capital expenditures, and leasing costs necessary to
achieve stabilization.
San Francisco-based Terreno Realty
owns and operates industrial real estate properties primarily in
six major coastal markets of the U.S. These include the high
barrier-to-entry markets of Los Angeles, Northern New Jersey/New
York City, San Francisco Bay Area, Seattle, Miami and Washington
D.C./Baltimore.
Each of the locations in which
Terreno Realty has a significant presence is characterized by a
well-established transportation network – seaports, airports,
highways and railways that are essential for the swift distribution
of goods. In addition, available land in these markets is scarce,
resulting in steep barriers for the development of new and
competing properties.
We have a Neutral rating on Terreno
Realty, which presently has a Zacks #3 Rank translating into a
short-term Hold rating. However, we have an Outperform
recommendation and a Zacks #1 Rank (short-term Strong Buy rating)
for Winthrop Realty Trust (FUR), one of the peers
of Terreno Realty.
WINTHROP REALTY (FUR): Free Stock Analysis Report
TERRENO REALTY (TRNO): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Grafico Azioni Winthrop (NYSE:FUR)
Storico
Da Giu 2024 a Lug 2024
Grafico Azioni Winthrop (NYSE:FUR)
Storico
Da Lug 2023 a Lug 2024